In new construction, outdoor LED luminaires can offer high quality lighting as well as motion sensor controls. LEDs also comply with the tightening energy codes with little difference once in the medium- to high-end prices because styles, functions, and materials appear to be much more influential on price than the type of lamp. The long life relieves the homeowner of changing lamps for many years, most likely longer than they will own the home, and allows for safety and security provided by lighting when you need it.

Energy use of about 8 watts compares well with CFLs at 13-18 watts and incandescent lamps at 40-60 watts. The simple payback of $20 LED upgrade to a porch light is about 7 ½ months.

Because of the poor performance of CFLs in cold weather, customer satisfaction should be higher with LEDs because they will come on immediately at full brightness. The integral (rather than screw-in) products also make make it especially hard to tamper with. The current residential LED marketplace is somewhat small but poised to grow, and with tightening codes, rising electricity costs, and concerns about mercury, this is likely to be a winning solution to outdoor lighting. As consumers gain familiarity with the technology, prices drop, and the number of products expand, they may consider changing technologies to a retrofit lamp or a replacement luminaire when their current systems fail. Once basic safety and security needs are met, outdoor lighting is used to convey status and image. Including a feature unique to LEDs, The opportunity for having programmable, color changing lights, which is a feature unique to LEDs, may encourage the part of the population excited about lighting their property at night to embrace LED technology.

The vast majority (75% or more) of this lighting market uses incandescent lamps and another 12 % uses halogen technologies. Compact fluorescent lamps (CFLs) make up virtually all the rest. As of 2010, the market penetration of LED products in this area was considered negligible by a study done for the DOE.

Pole or wall mountings are the most common fixtures, but some are on porch ceilings, post tops, and others mounted on the ground. These applications often operate from dawn to dusk, but some are only switched on for special use or controlled by motion sensors. The Energy Savings Estimates of Light Emitting Diodes in Niche Lighting Applications study completed for the DOE found the average duration of operation to be about 4.5 hours per night.

The outdoor residential market application is the only one with a negligible LED penetration and energy savings for 2010. Energy Star currently only has outdoor LED porch lights for the residential market on the approved list-representing 7 manufacturers and 41 products as of February, 2012. About 63 percent of these had color temperatures in the 2700-3000K range—the traditional, warm color commonly used in residential applications. More commercial products are available and some would be suitable for residential applications. Due to the decorative nature of most porch lighting, many consumers prefer to keep them and just replace lamps as they fail so the LED screw-in replacement lamps may find some niche use here.

Many building energy codes set a minimum efficacy for luminaires in new construction, favoring CFLs and LEDs, or requiring motion sensors and photo sensor controls. Because these controls may be built into the fixture, and most CFLs and consumer LED replacement lamps are not compatible (or are significantly more expensive) with the controls, replacement options can be limited. However, as with most aspects of LED technology, this too is improving steadily.

LEDs can also offer colored lighting and even color-changing technology. Currently these technologies are available for the commercial and entertainment sectors, but they are likely to find a residential market for those willing to spend more for artistic exterior lighting instead of the minimal porch lighting required for safe travel.

First costs are often a barrier. Most residential consumers are most interested in appearances, function and first costs ahead of energy-efficiency.

As outdoor entertainment spaces increase, having dimming as a control feature is important to some consumers, and that is likely to carry an additional price barrier.

The traditional technology provides a warm, ,yellowish light —while the most efficient LEDs tend to be on the bluish side of white light.

Appearances can be very different from traditional products and may not appeal to many people who prefer less modern styles.. LED lamps may not be bright enough to allow security cameras to work well.

As with all LED technology, consumers need good sources of information they can feel confident using to make selections and easy return policies if problems arise. Buying products from unfamiliar manufacturers that are expected to last many years can feel risky.

Compact fluorescent lamps and some motion sensor-controlled lamps are most able to comply with current energy codes. Homeowners may also retrofit existing fixtures having medium sockets with incandescent, halogen, CFL or LED products. Given the high cost of some fixtures, it is likely those owners would retrofit the lamps for efficiency rather than get a new fixture.Since CFLs do not operate well on motion sensors, they are left operating dusk to dawn or manually switched. Users wanting to reduce operating times will choose incandescent or LED  —and lighting standards will be reducing the options for incandescent products.